The Goods and Services Tax Act, 2017 (GST Act) provides a set of standards outlining the requirements for investigations, summonses, arrests, and bail procedures for breaking GST laws. According to these rules, consent to be arrested under the GST Act must be given in situations when there is a demonstrable intention to evade taxes or break the law. The Ministry of Finance letter further noted that if a tax disparity is based on a difference in legal interpretation of the law, consent for arrest should not be granted.
These recommendations further said that the Criminal Penal Code (CrPC) arrest procedures must be followed if an accused person needs to be detained for violating the GST Act. The Directorate General of GST Intelligence (DGGI) must receive information about arrests made in accordance with the Act each month, per the regulations.
"As per Section 70 (1) of the CGST Act, summons can be issued by proper officer to any person whose attendance is considered necessary either for giving evidence or producing a document or any other thing in an inquiry in the same manner as provided in the case of a civil court," the guidelines stated, citing the Code of Civil Procedure, 1908.
As long as the disclosure is not harmful to the investigation's goals, they should also include the names of the offender(s) being investigated in order to give potential witnesses a clear idea of whether they have been called as witnesses, co-accused, or accused.
While issuing summons under the GST Act, officials must also ensure that this is done in a judicious manner. Authorities concerned are also advised to look at incidents where a letter of requisition may suffice instead of issuing summons.
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